On July 1,
Australia-based resources company Strike Resources Ltd (Strike) announced that it has executed an agreement with Iron Associates Corporation (IAC) to purchase IAC's interest in the Peruvian company Apurimac Ferrum S.A. (AF). Strike holds its interest in the Apurimac and Cusco
iron ore projects in
Peru through AF. After this strategic transaction, Strike's shareholding in AF will increase from 44 percent to 56 percent, acquiring IAC's 12 percent shareholding in AF.
Strike has been in discussions with AF shareholders over the past year to explore opportunities to increase its shareholding in AF. This transaction is the first stage in Strike's strategy to simplify the AF shareholding structure and increase and consolidate its presence in the prospective Apurimac and Cusco regions of
Peru.
Strike paid IAC US$1.2m in cash on the execution of the agreement and will issue IAC 9 million Strike shares as consideration under the agreement. These shares will represent 6.3 percent of Strike's issued capital.
Initially, the simplification of the AF shareholding structure will improve operational efficiency and reduce risks during the exploration and project execution phases. In addition, over the longer term it enhances the ability to attract strategic partners to develop the Apurimac and Cusco
iron ore projects.